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To ask the Secretary of State for Work and Pensions, what discussions she had with the Chancellor of the Exchequer ahead of Spending Review 2020 on increasing the level of statutory sick pay.
To ask the Secretary of State for Work and Pensions, what discussions she had with the Chancellor of the Exchequer ahead of Spending Review 2020 on increasing the level of statutory sick pay.
Statutory Sick Pay (SSP) is paid entirely by employers to employees where they are sick or incapable of work and where they meet the qualifying conditions. As such SSP rates are not relevant to Spending Review discussions, which focus on Departmental Admin expenditure plans.
SSP provides a minimum level of income for employees when they are sick or incapable of work. It is designed to balance support for an individual when they are unable to work because of sickness with the costs to employers of providing such support. Some employers may also decide to pay more, and for longer, through Occupational Sick Pay.
This government has a strong safety net that helps people who are facing hardship and are unable to support themselves financially and we have taken steps to strengthen that safety net. SSP is just one part of our welfare safety net and our wider government offer to support people in times of need. Where an individual’s income is reduced while off work sick and they require further financial support, for example where they are not eligible for SSP, they may be able to claim Universal Credit and new style Employment and Support Allowance, depending on their personal circumstances. We have strengthened our wider safety net by temporarily increasing the standard allowance of Universal Credit by the equivalent of £20 per week, meaning that claimants will be up to £1,040 better off for the 20/21 tax year.
Background
The government recognises that small and medium employers may struggle to deal with the increased costs of sick pay as a result of coronavirus.
To support businesses with the temporary economic impacts related to coronavirus, small and medium employers with fewer than 250 employees, are currently able to reclaim up to two weeks’ of SSP paid per employee for sickness absences related to coronavirus.
Even before the pandemic began it was clear that the UK has one of the most manifestly inadequate systems of statutory sick pay in the world: we are second from the bottom in European terms, and it continues to shun millions of workers who are low earners, work in the gig economy or are self-employed. As we come back from the crisis in economic terms and make the workplace better, will the Prime Minister agree to work with those of us in the Opposition who want to see a [Inaudible.] system that is fit for the 21st century that can meet people’s needs?
Even before the pandemic began it was clear that the UK has one of the most manifestly inadequate systems of statutory sick pay in the world: we are second from the bottom in European terms, and it continues to shun millions of workers who are low earners, work in the gig economy or are self-employed. As we come back from the crisis in economic terms and make the workplace better, will the Prime Minister agree to work with those of us in the Opposition who want to see a [Inaudible.] system that is fit for the 21st century that can meet people’s needs?
Yes, of course, statutory sick pay is an important part of the way we tackle the problems of self-isolation and all the issues faced by people facing coronavirus, but people also receive additional funds. Anybody looking impartially at what we are doing to support the people of this country throughout this epidemic will concede that the UK has done more than virtually any other country on earth to look after the people of this country, whether through the furloughing scheme, the bounce-back loans or anything else. Having listened to the hon. Gentleman, I should say I have also pledged that we are going to put in gigabit broadband across the whole of the UK, so that he can be heard more clearly in future.